Lithium Battery Components Market

Lithium Battery Components Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2019 - 2027

Lithium Battery Components Market: Overview

A lithium battery has four major components: cathode material, anode material, separator, and electrolyte
Lithium batteries generate electricity through chemical reactions of lithium. Lithium is inserted into the battery and the space for lithium is called cathode. In the cathode of a lithium battery, lithium oxide is used as an active material. The cathode determines the capacity and average voltage of a lithium battery.
Similarly, the anode substrate is also coated with an active material. Anode stores and releases lithium ions from the cathode, allowing the passage of current through an external circuit.
Electrolyte serves as a medium that enables the movement of only lithium ions between the cathode and the anode
The separator functions as a physical barrier keeping the cathode and the anode apart

Key Drivers of Lithium Battery Components Market

Factors such as boom in the demand for electric vehicles and rapid technological advancements are expected to fuel the demand for lithium batteries during the forecast period. This, in turn, is projected to drive the global lithium battery components market between 2019 and 2027.
Increasing use of smart devices, such as smartphones, tablets, and digital cameras, wherein lithium batteries are employed, is expected to drive the demand for lithium battery components during the forecast period.

Cathode Segment to Expand Rapidly

The cathode segment of the lithium battery components market witnessed rapid growth in 2018. It is expected to dominate the market during the forecast period also.
Cathode is the most important component of a lithium battery, as it is a source of lithium ions and it determines the capacity and average voltage of a lithium battery

Cathode materials are widely used in batteries along with several other carbon-related materials, such as carbon nanotubes (CNTs), carbon nanofiber, and meso-cellular carbon foam. Cathode enhances the decomposition of electrolytes during battery discharging. Due to this, the demand for cathode materials is increasing and the cathode segment is expected to dominate the global lithium battery components market during the forecast period.

Consumer Electronics Segment to Dominate Global Lithium Battery Components Market

The consumer electronics segment accounted for a major share of the global lithium battery components market in 2018 and it is expected to remain dominant throughout the forecast period
Lithium batteries are employed in consumer electronics devices such as smartphones, tablets, and laptops. Continuous advancements in the consumer electronics sector and support from governments and associations for the adoption of lithium batteries are factors boosting the global lithium battery industry. This, in turn, is driving the global lithium battery components market.
Increase in the demand for electric vehicles across the globe is also expected to drive the global lithium battery components market during the forecast period

Asia Pacific to Hold a Prominent Share of Global Lithium Battery Components Market

Geographically, the global lithium battery components market can be divided into five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Asia Pacific accounted for a major share of the global lithium battery components market in 2018 and the trend is expected to continue during the forecast period.
Rising Internet penetration, increasing disposable income, changing lifestyle, and technological advancements in developing economies, such as China and India, are augmenting sales of portable electronic devices such as smartphones, tablets, laptops, and digital cameras. Increase in sales of portable electronic devices is fueling the demand for lithium batteries in Asia Pacific. This, in turn, is driving the lithium battery components market in the region.
China holds a prominent share of the lithium battery components market in Asia Pacific and it is expected to continue its dominance during the forecast period. This dominance can be attributed to shift of manufacturing operations by automobile and electronics manufacturers toward China in order to reduce labor and logistics costs and gain access to uninterrupted supply of raw materials.
In addition to this, in India, consumers are shifting from traditional automobiles toward electric vehicles. This shift can be attributed to rising awareness amongst consumers about reduction in greenhouse gas (GHG) emissions and low running and maintenance costs associated with electric vehicles.
However, tax incentives and subsidies offered by several governments, such as the Government of India, for purchase of electric vehicles are fueling the demand for electric vehicles globally. This, in turn, is projected to drive the global lithium battery components market during the forecast period.